The Blackstone Group and Glimcher Realty Trust (NYSE: GRT), announced a partnership for the acquisition and management of two regional malls in a deal worth $320 million. As part of the deal, Blackstone will assume $218 in mortgages on the properties. The transaction is expected to generate net proceeds of approximately $60 million to Glimcher that will be used to reduce amounts outstanding under Glimcher's credit facility.
The assets are the Lloyd Center in Portland, Ore. and WestShore Plaza in Tampa, Fla. after considering debt assumption and typical closing costs. The joint venture will acquire the entities that own these two properties. An affiliate of Blackstone will acquire 60 percent of the joint venture and Glimcher will retain the remaining 40 percent interest. The transaction requires a $6.3 million security deposit, which is non-refundable provided the consent of existing first mortgage lenders is obtained and customary tenant estoppels are received.
" We are excited about forming this new relationship with Blackstone, a highly-respected and strategic investor, which furthers our goal of raising capital through the partial sales of our Lloyd Center and WestShore properties," Glimcher Chairman and CEO Michael P. Glimcher said in a statement. "This relationship will help Glimcher in the near-term while also positioning us to benefit from the economic recovery when it occurs,"
Kimco Acquires Interest in 21 Properties in PL Retail Portfolio
Kimco Realty Corp. (NYSE: KIM) has completed the purchase of the remaining 85 percent interest in PL Retail LLC, an entity comprising 21 shopping centers that the company manages and in which the company previously held a 15 percent interest.
The price for the 85 percent interest of approximately $175 million was based on an enterprise price of $825 million, less the assumption of approximately $564 million in non-recourse mortgage debt and $50 million of perpetual preferred stock. The company funded the acquisition from its existing credit facility. Kimco purchased the remaining 85 percent interest from a fund managed by DRA Advisors LLC. The $825 million enterprise price includes approximately $805 million for existing assets, which represents a 7.6 percent cap rate on underwritten net operating income of approximately $61 million annually, or approximately $156 per square foot, plus $20 million for the development rights.
"This is a new beginning," Kimco Chairman and CEO Milton Cooper said in a statement. "These are high-quality assets in strong markets which are currently 94 percent leased. Costco is the largest tenant in this portfolio and this transaction continues Kimco`s position as Costco`s largest landlord. Kimco will continue to pursue purchases of shopping centers to leverage our existing infrastructure and enhance shareholder value."
The 21 shopping centers comprising approximately 5.2 million square feet of gross leasable area are located in California, Florida, Phoenix, metro New Jersey, Long Island, N.Y., metro Washington D.C. and Greenville, S.C.
Other Notable Deals
National Retail Properties Inc. closed a new $400 million credit facility, replacing its existing $400 million credit facility which was set to mature in May 2010. The new facility matures November 2012, with an option to extend maturity to November 2013. The facility is priced at LIBOR plus 280 basis points with a 1.0 percent LIBOR floor. The new facility also includes an accordion feature to increase the facility size to $500 million. Wells Fargo Securities and Banc of America Securities LLC were joint lead arrangers of this credit facility. Documentation agents were PNC Bank, and U.S. Bank. Other bank participants include BB&T, Citicorp, Royal Bank of Canada, SunTrust Bank, Chevy Chase Bank, Capital One Company and Raymond James Bank….Inland Western Retail Real Estate Trust Inc. has closed on the sale of two assets, aggregating 334,700 square feet, for a total sales price of $100 million. The company sold a 149,700-square-foot Wal-Mart Supercenter in Jonesboro, Ark. and a 185,000-square-foot Sprint Data Center in Santa Clara, Calif. The deal allowed Inland to extinguish or repay $59.0 million of debt…. GFC Fifth Avenue LLC, a partnership of Crown Acquisitions, Goldman Properties and the Feil Organization paid $117 million for the 24,700-square-foot retail portion of the St. Regis New York. The seller was Starwood Hotels & Resorts Worldwide Inc.… Dockerty Romer & Co. arranged $3.4 million in financing for a 120,390-square-foot Promenade at Inverrary unanchored retail strip center in Lauderhill, Fla. Non-Recourse financing was arranged through a regional bank with a 6.95 percent interest rate, three-year term and a 25-year amortization schedule. The borrower was 4400 University L.P.….Colliers International directed the sale of a 10,491-square-foot retail building at 138 Paul Huff Parkway to Jae Lee, a Tenn.-based private investor for about $1.2 million.
(To have your deals included in our weekly roundup, please email releases to David Bodamer or Elaine Misonzhnik.)